Property developer Siamese Asset Co will develop condo projects with a hotel business licence in Bangkok and other tourist destinations to tap rising demand from investment buyers.
Managing director Kajonsit Singasansern said many investment buyers want to invest in a condo unit to rent out for short periods but are worried about doing so because of illegality.
The concept that Siamese Asset is introducing is development of condominiums with specifications, facilities and requirements to qualify for a hotel business licence under the Hotel Act.
All unit buyers are required to sign a consent letter at the beginning or when booking a unit to allow a hotel licence submission for the project.
"This concept will give investment buyers no fear of renting out units on a daily or weekly basis, which is an illegal but growing business," Mr Kajonsit said.
The company's first project operating as a condominium with a hotel licence is half the tower at Blossom @ Fashion on Ram Intra Road. Starting operations a few months ago, its 97 rooms, all of which are owned by the company, offer a rate of 800 baht per night.
Targeting free independent travellers and marketed via an online travel agent, the rooms have an occupancy rate of 20-30% and aim for 60% by the end of the first half. Yield will be 7% annually for a minimum occupancy of 75%.
Earlier this year the company launched two condo projects under the concept, The Collection on Sukhumvit Soi 16 worth 4.8 billion baht and Siamese Exclusive Ratchada near Ratchadaphisek MRT station worth 3.5 billion baht. Half a tower at each project will contain serviced residential units.
"We will do everything as required by the Hotel Act to obtain the licence," Mr Kajonsit said. "The only two reasons that it will not get a licence are changes in the laws or no allowances to do."
The company will launch projects with the concept in tourist spots like Chiang Mai, Pattaya, Phuket and Hua Hin next year under its fighting brand, Blossom, after an initial public offering.
In March 2018, the company signed a contract with Greenland International Hotels, owned by one of China's largest real estate developers, to run 10 hotels for five years, starting with Blossom @ Fashion, followed by the Ratchada project and the Sukhumvit Soi 16 site.
On June 15 the company will launch Siamese Rama 9, a 10-billion-baht mixed-use project of office space and a condominium with a hotel licence. It will occupy 13.5 rai on Rama IX Road near a future station of the Orange Line.